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Malaysian ringgit
The Malaysian ringgit (plural: ringgit; symbol: RM; currency code: MYR; formerly the Malaysian dollar) is the currency of Malaysia. It is divided into 100 sen (cents). The ringgit is issued by the Bank Negara Malaysia. Contents * 1 Etymology * 2 History * 3 Coinage ** 3.1 First series (1967) ** 3.2 Second series (1989) ** 3.3 Third series (16 January 2012) * 4 Banknotes ** 4.1 First series (1967) ** 4.2 Second series (1982) ** 4.3 Third series (1996) ** 4.4 Fourth series (2012) ** 4.5 Commemoratives * 5 Kijang Emas * 6 Notes and references * 7 See also * 8 External links Etymologyedit The word ringgit means "jagged" in Malay and was originally used to refer to the serrated edges of silver Spanish dollars which circulated widely in the area during the 16th and 17th century Portuguese colonial era. Due to the common heritage of the three modern currencies, the Singapore dollar and the Brunei dollar are also called''ringgit'' in Malay (currencies such as the US and Australian dollars are translated as dolar), although nowadays the Singapore dollar is more commonly called dolar in Malay. To differentiate between the three currencies, the Malaysian currency is referred to as Ringgit Malaysia, hence the official abbreviation and currency symbol RM. Internationally, the ISO 4217 currency code for Malaysian ringgit is MYR. The Malay names ringgit and sen were officially adopted as the sole official names in August 1975. Previously they had been known officially as dollars and cents in English and ringgit and sen in Malay, and in some parts of the country this usage continues. In the northern states of Peninsular Malaysia, denominations of 10 sen are called kupang in Malay ("poat8" in Hokkien), e.g. 50 sen is 5 kupang ("5 poat8" in Hokkien). Historyedit On 12 June 1967, the Malaysian dollar, issued by the new central bank, Bank Negara Malaysia, replaced the Malaya and British Borneo dollar at par.9 The new currency retained all denominations of its predecessor except the $10,000 denomination, and also brought over the colour schemes of the old dollar. Over the course of the following decades, minor changes were made on the notes and coins issued, from the introduction of the M$1 coin in 1967, to the demonetisation of RM500 and RM1000 notes during the 1990s. As the Malaysian dollar replaced the Malaya and British Borneo dollar at par, the new dollar was originally valued at 8.57 dollars per 1 British pound sterling. In November 1967, five months of the introduction of the dollar, the pound was devalued by 14.3%. The new currency was not affected but earlier notes of the Malaya and British Borneo dollar were still pegged at 8.57 dollars per 1 pound; consequently these notes were reduced in value to 85 cents per dollar. Despite the emergence of new currencies in Malaysia, Singapore and Brunei, the Interchangeability Agreement which the three countries adhered to as originally members of a currency union, meant the Malaysian dollar was exchangeable at par with the Singapore dollar and Brunei dollar. This ended on 8 May 1973, when the Malaysian government withdrew from the agreement.10 The Monetary Authority of Singapore and the Brunei Currency and Monetary Board still maintain the interchangeability of their two currencies, as of 2009.10 In 1993, the currency symbol "RM" (Ringgit Malaysia) was introduced to replace the use of the dollar sign "$" (or "M$"). Between 1995 and 1997, the ringgit was trading as a free float currency at around 2.50 to the US dollar,1111 before dipping to under 3.80 to the dollar by the end of 1997,12 following the year's East Asian financial crisis. For the first half of 1998, the currency fluctuated between 3.80 and 4.40 to the dollar,12 before Bank Negara Malaysia pegged the ringgit to the US dollar in September 1998, maintaining its 3.80 to the dollar value for almost seven years, while remaining floated against other currencies. The ringgit lost 50% of its value against the US dollar between 1997 and 1998, and suffered general depreciation against other currencies between December 2001 and January 2005. As of 4 September 2008, the ringgit has yet to regain its value circa 2001 against the Singapore dollar (SGD) (2.07 to 2.40 to the MYR),13 the euro (EUR) (3.40 to 4.97 to the MYR),14 the Australian dollar (AUD) (1.98 to 2.80 to the MYR15), and the British pound (GBP) (5.42 to 6.10 to the MYR16). On 21 July 2005, Bank Negara announced the end of the peg to the US dollar immediately after China's announcement of the end of the renminbi peg to the US dollar.171819 According to Bank Negara, Malaysia allows the ringgit to operate in a managed float against several major currencies. This has resulted in the value of the ringgit rising closer to its perceived market value, although Bank Negara has intervened in financial markets to maintain stability in the trading level of the ringgit. This task is made easier by the fact that the ringgit has remained non-tradable20 outside of Malaysia since 1998, which coincided with its pegging to the US dollar, a restriction that was not removed when it was de-pegged in July 2005. Following the end of the currency peg, the ringgit appreciated to as high as 3.16 to the US dollar in April 2008. The ringgit had also enjoyed a period of appreciation against the Hong Kong dollar (HKD) (from 0.49 to 0.44 to the MYR)21 and the renminbi (CNY) (0.46 to 0.45 to the MYR)22 as recently as May 2008. Political uncertainty following the country's 2008 general election and the 2008 Permatang Pauh by-election, falling oil prices, and the lack of intervention by Bank Negara to increase already low interest rates (which remained at 3.5% since April 2006)23 led to a slight fall of the ringgit's value against the US dollar between May and July 2008, followed by a sharper drop between August and September of the same year. As a result, the US dollar appreciated significantly to close at 3.43 to the MYR as of 4 September 2008,24 while other major currencies, including the renminbi and Hong Kong dollar, follow suit. The drop brings the ringgit to its weakest since 24 September 2007, and ranks it as the second worst performing Southeast Asian currency between June 2008 and September 2008.23 As of 5 August 2012, Malaysia ringgit stands at USD 1 = MYR 3.1730. Coinageedit First series (1967)edit The first series of sen coins were introduced in 1967 in denominations of 1 sen, 5 sen, 10 sen, 20 sen, 50 sen, followed by the introduction of the 1 ringgit coin (which used the $ symbol and is the largest coin in the series) in 1971. While varied by diameters, virtually all the coins were minted in near-consistent obverse and reverse designs, with the obverse depicting the then recently completed Malaysian Houses of Parliamentand the federal star and crescent moon from the canton of the Malaysian flag. All coins were minted from cupronickel, the only exception being the 1 sen coin, which was first composed from bronze between 1967 to 1972, then in steel clad with copper from 1973 on. The 50 sen coin is the only one in the series to undergo a redesign, a minor 1971 modification on its edge to include "Bank Negara Malaysia" letterings. All coins have the initials GC on the reverse, below the Parliament House. It stands for Geoffrey Colley, Malaysia first coin series' designer.25[verification needed] Minting of the first sen series ended in 1989, when the second series was introduced. The coins older remain legal tender as of 2013, but have steadily declined in number and are seldom seen in circulation. The $1 coin has not been common in circulation since the introduction of the second series $1 coins. Second series (1989)edit The second series of sen coins entered circulation in late-1989, sporting completely redesigned observes and reverses, but predominantly retaining the design of edges, diameters and composition of the previous series' coins as of 1989—the 1 ringgit coin an exception. Changes include the depiction of items of Malay culture on the obverse, and the inclusion of a Hibiscus rosa-sinensis (Malay: Bunga Raya), the national flower of Malaysia, on the upper half of the reverse. The second series was designed by Low Yee Kheng. In addition to changes on its observe and reverse, the size of the 1 ringgit coin was also reduced from a diameter of 33 mm to 24 mm, and was minted from an alloy of copper, zinc and tin, as opposed to the first series' cupronickel. The $ symbol was brought over to the new coin, but was dropped in favour of "RINGGIT" for coins minted from 1993 onwards. On 7 December 2005, the 1 ringgit coin was demonetised and withdrawn from circulation. This was partly due to problems with standardisation (two different versions of the second series coin were minted) and forgery. As of 1 April 2008, a rounding mechanism of prices to the nearest 5 sen, applied to the total bill only, is in force, which was first announced in 2007 by Bank Negara Malaysia, in an attempt to render the 1 sen coin irrelevant.26 Individual items and services can still be priced in multiples of 1 sen with the final totalled rounded to the nearest 5 sen. For example, purchasing two items priced RM4.88 and RM3.14, totalling RM8.02, would then be rounded to RM8.00. If each item had been individually rounded (to RM4.90 and RM3.15 respectively) the incorrect total would have been RM8.05. In practice, individual items will probably remain priced at so-called "price points" (or psychological pricing and odd-number pricing) ending in 98 and 99 to maximise rounding gains for the vendor, especially in the case of single item purchases. Existing 1 sen coins in circulation remain legal tender for payments up to RM2.00.27 Third series (16 January 2012)edit The third series of coins were announced on 25 July 2011, first being issued as commemorative coins to mark their release in early 2012. The third series carry a theme named "Distinctively Malaysia" and are inspired from motifs of flora and fauna drawn from various cultures in Malaysia to "reflect the diversity and richness of Malaysia's national identity". The denominations issued are 5, 10, 20 and 50 sen. On 24 October 2011, Deputy Finance Minister Datuk Donald Lim named Poogsan Corporation of South Korea as the series' coin suppliers and the coins are minted at the Bank Negara Mint in Shah Alam.28 According to Lim, costs in producing the coins will be reduced by 49% due to the change in metal composition. Other changes in the series include the diameter, the colour on the 20- and 50 sen coins (from silver to yellow) and a redesign on the obverse (featuring different motifs for each denomination), fourteen dots symbolising the thirteen states and the collective Federal Territories, and five horizontal lines indicating the five principles of Rukunegara.29 The 50-cent coin is more distinctive than the other denominations. The round shape of the coin has nine indentations, forgoing the original "BANK NEGARA MALAYSIA" lettering. The obverse does not feature the five horizontal lines, but instead a latent image security feature is placed over the coin, where lettering of the denomination "50" and "SEN" can be seen when the coin is tilted slightly. The 20 sen and 50 sen coins are look similar to €0.20 and €0.50 coin in size,design and colour,although it only worth at €0.047 and €0.12 respectively.However,edges of the coins are similar to €0.20 for 50 sen coins and €0.50 for 20 sen coins to distinguish it with €0.20 and €0.50 euro coins. Banknotesedit First series (1967)edit Bank Negara Malaysia first issued Malaysian dollar banknotes on 6 June 1967 in $1, $5, $10, $50 and $100 denominations.30 The $1000 denomination was first issued on 2 September 1968. The first Malaysian banknotes carried the image of Tuanku Abdul Rahman, the first Yang di-Pertuan Agong of Malaysia and bore the signature of Tun Ismail bin Mohamed Ali, the first Malaysian Governor of Bank Negara Malaysia. On 16 August 1972, Bank Negara Malaysia adopted official new spelling system of the national language, Bahasa Malaysia, into the printing of its currency notes while retaining the designs. The banknotes with new spellings are circulated alongside the old banknotes.31 Second series (1982)edit The second series was issued with Malaysian traditional ornamental designs in 1982, in $1, $5, $10, $20, $50, $100, $500, and $1000 denominations. The $20 was generally relatively uncommon. Until 2010 the second series notes are still occasionally encountered. The mark for the blind on the upper left hand corner was removed on the second revision in 1985. In 1999 the RM500 and RM1000 notes were discontinued and ceased to be legal tender. This was due because of the Asian monetary crisis of 1997 when huge amounts of ringgit were taken out of the country to be traded in these notes. In effect the notes were withdrawn out of circulation and the amount of ringgit taken out of the country in banknotes was limited to RM1000. In 1993, $1 notes were discontinued and replaced by the $1 coin. Third series (1996)edit The third series was issued with designs in the spirit of Wawasan 2020 in 1996 in denominations of RM1, RM2, RM5, RM10, RM50 and RM100. The larger denomination RM50 and RM100 notes had an additional hologram strip to deter counterfeiters. In 2004, Bank Negara issued a new RM10 note with additional security features including the holographic strip previously only seen on the RM50 and RM100 notes. A new RM5 polymer banknote with a distinctive transparent window was also issued. Both new banknotes are almost identical to their original third series designs. According to Bank Negara, all paper notes will eventually be phased out and replaced by polymer notes. Fourth series (2012)edit In early 2008, the Bank released a newly designed RM50 banknote, which according to the Bank, were to enter general circulation beginning 30 January 2008. Earlier, 20,000 more such notes with special packaging were distributed by the bank on 26 December 2007. The newly designed RM50 banknote retains the predominant colour of green-blue, but is designed in a new theme, dubbed the "National Mission", expressing the notion of Malaysia "moving the economy up the value chain", in accordance to Malaysia's economic transformation to higher value-added activities in agriculture, manufacturing and services sectors of the economy. The dominant intaglio portrait of the first Seri Paduka Baginda Yang di-Pertuan Agong, Tuanku Abdul Rahman, is retained on the right and the national flower, the hibiscus, is presented in the center on the obverse of the note. Design patterns from songket weaving, which are in the background and edges of the banknote, are featured to reflect the traditional Malay textile handicraft and embroidery.33 The first 50 million pieces of the new RM50 banknote features Malaysia's first Prime Minister, Tunku Abdul Rahman, at the historic declaration of Malaya's independence, and the logo of the 50th Anniversary of Independence on the reverse.33 Security features on the banknote include a watermarked portrait of the Yang di-Pertuan Agong, a security thread, micro letterings, fluorescent elements visible only under ultraviolet light, a multi coloured latent image which changes colour when viewed at different angles, and a holographic stripe at the side of the note and an image that is visible only via a moiré effect to prevent counterfeiting using photocopiers.33 Circulation for the first edition of this new RM50 banknote was eventually curtailed by the Central Bank due to the various Malaysia banks' automatic teller machines inability to accept it. The bank began to re-release the new series for general circulation beginning 15 July 2009 without the 50th Anniversary logo. This edition include new enhanced security features such as two color number fluorescents and security fibres.34 In May 2011, Bank Negara Malaysia had announced that they will introduce a new series of banknotes to replace the current design that has been in circulation for around 15 years. The most highlighted part of the announcement is the re-introduction of the RM20 note, which was not included in the third series.35 The design of the new notes was announced on 21 December 2011, and the notes are expected to be put into circulation in the second half of 2012. The new series banknotes are legal tender and will co-circulate with the existing series. The existing series will be gradually phased out. All banknote denominations in the new series will retain the portrait of the first Seri Paduka Baginda Yang di-Pertuan Agong, Tuanku Abdul Rahman ibni Tuanku Muhammad.36 The banknotes are supplied by Crane AB of Sweden, Giesecke & Devrient GmbH of Germany, Oberthur Technologies of France and Orell Fussli of Switzerland.28 They were put into circulation on 16 July 2012. Commemorativesedit Commemoratives are also released in limited quantity. To commemorate the 1998 Commonwealth Games in Kuala Lumpur, a commemorative RM50 polymer banknote was issued. This note is hardly ever seen in normal usage, its use being a collector's commemorative. This note was printed by Note Printing Australia (NPA). For the fourth series, customers are able to purchase them in three distinct sets; a pair of RM1 and RM5 banknotes, a set of RM20 banknotes, and the full set of RM1, RM5, RM10, RM20, RM50 and RM100 banknotes. The RM50 banknote no longer carries the logo of the 50th Anniversary of Independence. Kijang Emasedit Main article: Kijang Emas Three denominations of gold bullion coins, the "Kijang Emas" (the kijang, a species of deer, being part of Bank Negara Malaysia's logo) are also issued, at the face value of RM 50, RM 100 and RM 200, weighing ¼ oz, ½ oz and 1 oz respectively. It is minted by the Royal Mint of Malaysia and was launched on 17 July 2001 by Bank Negara Malaysia, making Malaysia the twelfth country to issue its own gold bullion coins. Like other bullion coins issued around the world, the Kijang Emas is primarily used as an investment rather than day-to-day circulation. The purchase and reselling price of Kijang Emas is determined by the prevailing international gold market price.39 Category:1975 introductions